After the 2001 anthrax attacks on government and media figures, no one wanted to take chances. In the worst biological attack in U.S. history, five people died and another 17 were infected. But what of future potential victims who don’t have such diligent facilities managers at their places of work and do come in contact with anthrax spores? TFN eNews reader and Hot Stock Confidential member John H. turned me on to a tiny outfit that addresses this deadly aspect of anthrax exposure.

Typically, antibiotic therapy is immediately administered to kill the anthrax bacteria. But such treatment doesn’t address the lethal toxins that may have already been released into the victim’s bloodstream and tissues.

Human Genome Sciences (NASDAQ:HGSI) conducted research that showed its antibody drug ABthrax improved survival rates by 64% for animals exposed the lethal doses of anthrax spores.

And if given prior to exposure, 100% of the subjects survived.

The drug has been tested on human volunteers and was found to be generally well tolerated.

The government bought it

The Maryland-based biotech announced its first delivery of 20,000 doses of ABthrax to the U.S. Strategic National Stockpile on Feb. 2.

The price tag? A cool $150 million.

Not bad for a company with just a $303 million market cap.

And investors took notice… HGS’ share price is slowly retreating from a 50% leap on the news.

But wait! There’s more…

A pipeline full of potential

The small cap has two treatments in Phase III clinical trials, one for hepatitis C (Albuferon) and another for lupus (LymphoStat-B).

HGS is working on their TRAIL receptor antibodies to fight cancer by, in essence, programming malignant cell death.

The company also has financial rights to three products produced by GlaxoSmithKline — at least one of which is in a Phase III clinical trial (Darapladib for the treatment of chronic coronary heart disease).

I have to agree with the wise John H., this one’s a winner.

I recommend you buy shares of Human Genome Sciences (NASDAQ:HGSI) at or under $2.50 and hold on for at least 20% gains in the next 8 months.

Source: An up and coming biotech: Human Genome Sciences Inc. (HGSI)